The ECO asset price model identifies signatures in price data indicating potential crashes or rallies and estimates the magnitudes, the probabilities, and the timing of expected moves. Lambda is an important predictor from the ECO modelling process that prescribes a weight for an asset in the near term. Lambda scores are generated weekly with scores ranging from -1 (short) to 2 (2X long). In the table below, we show how lambda successfully timed allocations to the broad asset classes derived from the AugurMax Investible Universe. The returns shown are ex-ante, i.e., the ECO scores are published in advance and the subsequent returns are tracked “live.”
More examples are shown here.